**This webcast aired on Wednesday June 9th, 2021**
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Throughout June, Hedgeye CEO Keith McCullough is hosting a special Real Conversations series with four leading market strategists: Inflation Tsunami: Investing During A Rising Inflationary Tide. Follow this link to get access to our other webcasts:
MORE INSIGHT WITH JAMES DAVOLOS
James is currently the Co-Portfolio Manager for Horizon Kinetics’ Inflation Beneficiaries ETF (INFL), the Internet Fund as well as several private funds and institutional separate accounts.
You can also watch James’ recent “Hedgeye Investing Summit” interview with Keith and Horizon Kinetics CIO Murray Stahl, here. They discuss Horizon Kinetics’ Inflation Beneficiaries ETF (INFL). $INFL is an actively-managed ETF which launched in January 2021 and has net assets exceeding $500 million….(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Davolos & McCullough, a well-known investment firm, recently shared their insights on how to invest during a rising inflationary tide. With inflation rates on the rise due to a variety of factors including supply chain disruptions, labor shortages, and government stimulus spending, investors need to consider inflation when making investment decisions.
According to Davolos & McCullough, one of the best ways to invest during inflation is to invest in assets that have historically shown to perform well during times of inflation. These assets include real estate, commodities, and inflation-protected securities. Real estate has been a traditional store of value during inflationary periods, and investing in commercial, industrial, or residential properties can help to protect against the erosion of the purchasing power of money.
Commodities such as gold, silver, and oil, have also been historically strong performers during inflationary periods. This is because these commodities are seen as a hedge against inflation, and their prices tend to rise as the value of currency decreases. Investors can gain exposure to these assets through exchange-traded funds (ETFs) or mutual funds.
Inflation-protected securities, such as TIPS (Treasury-Inflation Protected Securities), are another way to invest during inflation. These securities are issued by the US government and their principal value is adjusted for inflation. This means that if inflation rises, the value of the investment would increase along with it.
Davolos & McCullough also recommend investing in companies that have pricing power, meaning they are able to raise their prices without losing customers. These companies are often successful during times of inflation as they are able to pass on price increases to their customers, maintaining their profit margins.
Furthermore, investments in emerging markets can also be beneficial during times of inflation. These markets can offer exposure to sectors and industries that are not available in developed markets. As a result, they may be better positioned to perform well despite inflationary pressures.
In conclusion, it is crucial for investors to consider inflation when making investment decisions. By investing in assets that have historically performed well during inflationary periods, such as real estate, commodities, and inflation-protected securities, investors can help protect their portfolios from the effects of inflation. Additionally, investing in companies with pricing power and emerging markets can also offer potential benefits during inflationary times. Davolos & McCullough’s insights and recommendations on how to invest during inflation provide investors with valuable strategies to help navigate the current economic environment.
That was INTERESTING! HKs inflation ETF sounds very interesting. I'll be reading their prospectus tomorrow.
How can you really invest when it’s just a fake economy?? It has been just fantasy since the bail out 2008-9
This interview rang the bell at the top of the advertised INFL etf..
Nice job ?
Inflation hedges… Better a year early than a day late.
Old topics this show coined the phrase, A DAY LATE AND A DOLLAR SHORT.
We do our own shopping. I have a pretty good memory and buy the same products each shopping trip. I have seen no inflation over this past year. in fact some things have come down in price. Basel 3: how in the world are they going to hold gold down if they cannot create and sell gold derivatives? Also, gold as a tier one asset is gold bullish for certain. Also, you can't go to a gold shop around here and actually buy gold. Only thing they have in any quantity is junk silver with a 30% premium. Surely supply and demand has some influence here. Also an uptick in sovereign purchases. Also in 1920s German inflation was preceded by a short deflationary period before a quick turn for the worse. Several historical examples of this, not just the Weimer republic. So now everybody hates gold, so it is not a huge gamble to buy and average down. That is how the big boys do it right. The legendary 60% bounce is around where the price exceeds the cost basis of accumulated shares. Figured that one out myself. Thing is can the little guy hold out for the bounce? Hell yes. It won't take that long. If it fails I have a very nice refrigerator box picked out. Very durable construction with access to the Black Angus dumpster.
You are making good money. Which path are you taking, sybarite or spartan?
Huh? If inflation is being hidden by constant tweaks of the CPI measures then why wouldn't the Fed instead of targeting 2% inflation just tweak the CPI measures to show the actual "real" (according to Hedgeye et al.) inflation rate?
I respect Hedgeyes perspective on inflation but I am convinced that we are heading for deflation. Especially for asset prices. Current price spikes are short lived as supply chains will stabilize and stimulus money runs out. Feds QE is quite deflationary and there is little net new money created by the commercial banks. We are at the end of a bubble. And we saw similar things just prior to the 2008 bubble. Oil price went up to 150usd and then it crashed.
They won't give raises. Let's redistribute their wealth.
the fed will bankrupt hedgeye
Like the fed, if you just keep saying quad, it doesnt make people believe you, it just makes them believe your in your own world of made up words like a valley girl gag me with a spoon totally fer sure.
Nobody knows your imaginary quad system, stop referring to it every 10 minutes of your life, ok awesome, so radical, talk to the hand.
Keith, on some level you must realize your the only person using your made up quad words. Let it go, you tryed, it didnt catch on like transitory, your jealous of the fed. Maybe If you were fed chair you could say quadsitory.
Its transitory, no its quad 4, no its transitory, no wait its quad 2, or quad 3, or its transitory into quad 4. Whats your Is astrological sign? Lets just use a vudoo doll. No quad voduu dolls.
You have a the largest reserve currency on the planet being destroyed by the government that is authorized to do exactly that with the intent on saving it? Sounds a little screwed up don't you think?
I will stay long gold. It just not fashionable to fight the Federal Reserve when they are intent on being this stupid.
Best not to need beliefs. Identify trends starting and ending, with a readiness to sell any day the chart says the party is over.
I dont know why… but this dude smell like douchbag. I say this with respect Sir.
$CRB rocked today………….DOLLAR HEADED BACK TO 103 and higher………….will be the greatest head fake ………..DEFLATION is what is coming…the next bubble will be in DOLLARS……………good luck with cryptos and hunter biden art…
The comparison of bonds as meme stocks was truly lovely.
You're all wrong…today is nothing like any time in history….it's all going to crash..everything will crash.
Great observations= but I'm looking for stagflation- especially if oil moves up to $100…As to why buy stupidly overpriced bonds- FEAR